Apple could buy Disney after pullback

[AurumPunzel]

I don't think it is the right time to do a buyout, and given that the general market is already facing uncertainty, I don't think companies are going to be ravenous enough to exploit plummeting share prices for the sake of a hostile takeover.

 

[DantePD]

It's an interesting thought experiment, but I think the odds of anyone buying Disney are roughly the same as the odds of my chubby 5'4" butt signing an NBA contract

 

[Joe Brig]

It's more likely that Disney will sell off some of it other business to bring in money and handle debt. ESPN for example. I would not miss ESPN moving out of WDW.

 

[coaster32]

Yea, Disney will never be bought out, just too much value...

 

[MarkE83]

I was thinking that the bonds / cash were perhaps to buy someone, rather than trying to just get through and being bought themselves. Someone unexpected will probably go under as a result of this situation, and whoever has the cash ready to go and the interest may manage to pick up a steal.

 

[Alynw]

Wow, to not understand hostile takeovers is incredible. Yes, it matters if you own a significant amount of your own stock. It means Apple would need to do a lot of work lining up some of the larger Disney stock holders to vote with them. This IS a big deal, too bad you do not understand.

Apple can't just go on the open market and buy up all the shares and then be considered a majority shareholder and do a hostile takeover, doesn't work like that. The stocks u are referring too on the open market where prices are down doesn't have voting rights, the common stock with voting rights were sold to venture capitalists years ago when Walt first started. Apple could buy up a ton of stock and hang on to it and make some money if the market goes back up if they want.

 

[anthony2k7]

I wonder what disneys current cash burn rate is now and what reserves they have?

 

[Mattimation]

I wonder what disneys current cash burn rate is now and what reserves they have?

I do have to wonder if they’re more strapped for cash than we think they are because of all of Iger’s acquisitions, and that’s why he suddenly left - he doesn’t want to take responsibility for leaving Disney financially handicapped during a time of slow-to-no business. Definitely more of a tinfoil hat thought on my part, but I can’t help but wonder how large companies fare during this time

 

[CastAStone]

I wonder what disneys current cash burn rate is now and what reserves they have?

Making some assumptions based on their 10-K, I think they’ll be burning something like $50-$75 Million/day once the furloughs are in effect.

They just drew 7.2 billion in cash from issuing bonds, so that would last them around 100 days based on my estimate. But please be clear my estimate has a lot of assumptions about how much they can reduce costs that may not be accurate or even in the ballpark.

 

[Polydweller]

Apple can't just go on the open market and buy up all the shares and then be considered a majority shareholder and do a hostile takeover, doesn't work like that. The stocks u are referring too on the open market where prices are down doesn't have voting rights, the common stock with voting rights were sold to venture capitalists years ago when Walt first started. Apple could buy up a ton of stock and hang on to it and make some money if the market goes back up if they want.

What are you talking about? Shares bought on the stock market do have voting rights. I have a lot, bought on the stock exchange, and every year I get voting info and forms to submit my votes and do. Nothing what you say about common stock or voting rights is remotely accurate.

 

[Alynw]

What are you talking about? Shares bought on the stock market do have voting rights. I have a lot, bought on the stock exchange, and every year I get voting info and forms to submit my votes and do. Nothing what you say about common stock or voting rights is remotely accurate.

We are talking about Disney stocks here, per the entire conversation. Yea, alot of stock carry voting rights and those rights are spelled out specifically in the certificate and having a vote dosent mean u have vote for anything that could actually impact the company. And I'm not talking about bs penny stock or small companies. Big business like Disney or Apple dont offer enough stocks with voting rights that guarantee majority a seat. They do not leave themselves vulnerable. Disney has what, 2 billion shares, that doesn't mean they all carry the same weight, they could have 10 million shares that carry voting rights on a seat or nominees and then 50 million shares with voting right but dosent include anything that could have an impact or change the direction of the company, all depends on what the certificate states. I have stocks from the same company that I bought at separate times and they have different rights. Like I said, You nor Apple is getting on ETrade and doing a hostile takeover of Disney. If there is going to be a hostile takeover of Disney it will most likely be through buying out majority seats for a premium price and getting the rest to vote in their favor.

 

[TDSAXX]

Not sure what you mean by majority seats. All shares have equal voting rights; but almost 2/3 of shares are owned by institutions. Apple would have to offer a premium to current price to persuade those institutions to vote in favor of a takeover.

 

[Ellwood970]

2004 Comcast takeover. It could have happened but didn’t, many said because a lot of stock is owned by individual investors. The parks were always Disney’s cash cow, with prolonged closure and the debt from Fox. Let’s hope not. Can anyone imagine that land in Florida being split up.

 

[gatour]

Apple can't just go on the open market and buy up all the shares and then be considered a majority shareholder and do a hostile takeover, doesn't work like that. The stocks u are referring too on the open market where prices are down doesn't have voting rights, the common stock with voting rights were sold to venture capitalists years ago when Walt first started. Apple could buy up a ton of stock and hang on to it and make some money if the market goes back up if they want.

You are wrong. I bought my stock about 20 years ago, long after Walt died, and every year I get a "ballot" to vote my shares in regards to BOD directors, shareholder resolutions etc.

While I can't speak to Disney in specific, there are usually different classes of stocks. Class A, B, etc. they each can have different voting rights. I.E. Class A may have ten votes/per share of stock owned, while Class B may have 5 votes/per share, etc.

You really need to read up on Disney's financial history.

 

[Gordon Gekko]

In an effort to help everyone out here I can forward the discussion to closure: the answer to the original question is no, never, not happening

 

[Ellwood970]

I am curious. The land if Florida. Could a corporation buying Disney ever split that land up. It has to be worth more than the entire company in real assets.

 

[TDSAXX]

I am curious. The land if Florida. Could a corporation buying Disney ever split that land up. It has to be worth more than the entire company in real assets.

Disney currently has a market cap of 182 billion dollars. There’s no way the property in Florida is worth that much.

 

[Ellwood970]

Yes I know. Market cap is not a tangible asset.

 

[TDSAXX]

Yes I know. Market cap is not a tangible asset.

Doesn’t matter Apple would still have to pay that much plus a premium to acquire the company. The property in Florida isn’t worth anywhere near that.

 

[_19disnA]

The Disney property in Florida isn't their only asset. Disney Company isn't just the land associated with theme parks in Florida or California. Stock price is partly a reflection of ALL of their various current revenue streams, intellectual property, intangible things like the Disney 'brand' as well as the potential for future earnings.

You can read the latest annual report to see what all their company includes:
https://thewaltdisneycompany.com/investor-relations/#events